When tough times hit, proactive strategies pay

COVID-19 has been an enormous disruptor for people and businesses everywhere. Amidst the pandemic, auto finance companies have been under a lot of pressure on several fronts:

For auto lenders, this is a time for intense evaluation of current collections practices.

The pandemic has been a stress test on collections processes and systems. It’s caused auto financers to see more clearly how lagging digital infrastructure and underdeveloped omnichannel capabilities can create roadblocks to customers’ ability to “self-cure” and get on a rapid path to resolving any payment issues.

As more and more customers need additional help through this crisis, lenders who can deploy the tools and capabilities to enable customers to resolve their own payment issues will be ahead of the game. This can significantly relieve stress on contact center teams and help infuse cost efficiency for lenders while adding convenience and a sense of control for customers.

From deferred payment plans, extended loan terms, custom payment arrangements, “self-cure” strategies and other creative options, lenders need to make impacted customers feel they are fully supported with a wide range of workable options.

Example: A married couple is late on their auto loan payments and one is now out of work due to the pandemic — lowering their total monthly income. Traditionally, the couple would need to call an agent and talk through their options. If the lender is equipped with tools to be able to offer those options online, the customer can review those and self-initiate their new program after choosing the plan that best fits their needs — all without speaking to an agent. A payment plan that allows them to keep the car, but also make lower monthly payments will keep payments coming in while fostering good will with the customer.

Here are key attributes lenders can lean into as they look to stay strong and forge a successful path forward during tough times:

Learn much more in Conduent’s eBook, “Recovery in Action — Collections Solutions Lenders Need Right Now.

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